3 CD account mistakes to avoid in today's economy
The economic terrain millions of Americans find themselves in lately may not be the one many were hoping for. With inflation surging in recent months – now at its highest level in three years – and elevated interest rates effectively frozen for the foreseeable future, many understandably feel stuck right now. For savers, however, there remains a silver lining in the form of elevated interest rates on select savings accounts. That can help boost their money and protect it from the volatility it would otherwise feel if invested or stored in low-rate account alternatives.
A certificate of deposit (CD) account, for example, now comes with an interest rate of 4% or higher, depending on the term. That's $4 earned for every $100 deposited. Considering that the average rate on a traditional savings account is just 0.38% now, the benefits of a CD account are clear. Plus, CD rates are fixed, meaning that they won't change even if the economy or interest rate climate does. That's something that traditional, high-yield savings and money market accounts all fail to offer.
At the same time, a CD account is a savings tool that, like all others, will only be as effective as the saver who maintains it. And that means knowing which mistakes to avoid in today's economy, specifically. Below, we'll outline three worth understanding for those savers who have yet to take advantage of today's market with a high-rate CD account.
Start by seeing how much interest you could still be earning with a CD here.
3 CD account mistakes to avoid in today's economy
https://finance.yahoo.com/...
The economic terrain millions of Americans find themselves in lately may not be the one many were hoping for. With inflation surging in recent months – now at its highest level in three years – and elevated interest rates effectively frozen for the foreseeable future, many understandably feel stuck right now. For savers, however, there remains a silver lining in the form of elevated interest rates on select savings accounts. That can help boost their money and protect it from the volatility it would otherwise feel if invested or stored in low-rate account alternatives.
A certificate of deposit (CD) account, for example, now comes with an interest rate of 4% or higher, depending on the term. That's $4 earned for every $100 deposited. Considering that the average rate on a traditional savings account is just 0.38% now, the benefits of a CD account are clear. Plus, CD rates are fixed, meaning that they won't change even if the economy or interest rate climate does. That's something that traditional, high-yield savings and money market accounts all fail to offer.
At the same time, a CD account is a savings tool that, like all others, will only be as effective as the saver who maintains it. And that means knowing which mistakes to avoid in today's economy, specifically. Below, we'll outline three worth understanding for those savers who have yet to take advantage of today's market with a high-rate CD account.
Start by seeing how much interest you could still be earning with a CD here.
3 CD account mistakes to avoid in today's economy
https://finance.yahoo.com/...
14 days ago
